The Australian Private Equity and Venture Capital Association Limited (AVCAL) has defended the role of private equity in the economy, following the decision to launch an inquiry into the collapse of listed retailers in the Federal Parliament.
The national association, which represents the private equity and venture capital industries, said it would actively participate in the Senate Committee’s inquiry into the role of private equity firms within corporate takeovers, and emphasised the importance of private equity to the superannuation system.
AVCAL chief executive, Yasser El-Ansary, said there was an information gap around the role of private equity in the economy, adding the inquiry was an opportunity for them to explain their role.
“AVCAL will be putting forward a compelling base of evidence supporting the significant value our industry delivers to the economy, as well as the millions of Australian superannuation fund members across the community who benefit from a strong and well-functioning private equity industry,” El-Ansary said.
AVCAL referred to a 2007 Senate Inquiry into private equity investment, which said, “the committee believes it is important to continue to attract foreign investment into Australia and does not accept the narrowly held view that some sectors of the national economy should be protected from private equity activity”.
